Dive - Edited

3 Ways Retail Media can Take Marketplace Profitability to the Next Level

Learn why marketplaces and retailers are turning to Retail Media for a new high-margin revenue stream

Dive - Edited

The Virtuous Circle of Retail Media

Marketplaces are surging, but this belies the profitability challenges they face. Many are looking to Retail Media for new revenue streams to boost profitability. Understanding the factors that go into successfully monetizing the digital marketplace is critical for its long-term viability.


In this playbook, you will learn how retail media can:


  • Boost growth and profitability of the marketplace seller ecosystem

  • Create a high-margin incremental revenue stream for marketplaces

  • Drive customer loyalty.



What are the key metrics to measure marketplace profitability?

Gross merchandise value, customer acquisition cost, and customer lifetime value are the three most important KPIs to measure marketplace profitability. 

What are the common profitability challenges that Marketplaces face?

A significant challenge for Marketplaces is that Retail Media SaaS platforms designed for traditional e-commerce do not work for marketplaces due to their inability to address the complexity of multiple sellers, relevance, and real-time big data processing.


How can a marketplace increase revenue and profitability?

Marketplaces can use retail media to monetize digital inventory. Retail media can transform a marketplace by creating high-margin additional revenue streams, increasing growth and profitability of the marketplace seller ecosystem and transforming consumers into loyal customers.

What strategies can be used to increase customer lifetime value and drive profitability for a marketplace?

Consumers are more likely to remain loyal when their needs are met. Retail media can help retailers attract and retain reticent shoppers by giving them exactly what they need when they need it. 

Want to learn about how retail media can drive marketplace profitability?

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